If partnership deed is silent on the profit sharing ratio and other provisions: interest @_____ per annum is allowed on loans advanced by partners:
- A8%
- B6%
- C10%
- D12%
Solution & Step-by-step Explanation
According to the Indian Partnership Act, 1932, if the partnership deed is silent regarding explicit interest rates, a partner who advances a loan to the firm beyond their regular capital contribution is entitled to receive interest at the rate of